Gloria ai Bastardi - Cap. 1

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Yellen says it wasn’t the Fed’s credibility, but rather the data, which led the Fed to hike rates. Recall that at the last meeting, in October, the Fed raised the stakes by saying a hike would be considered at the next (e.g. this) meeting. So some skeptics said the Fed boxed itself into a corner.

Since then, the U.S. economic data has been mixed — pretty good news on the jobs front, very decent numbers on the services side, and frankly awful data from manufacturing.

Yellen points out that the impact from rate hike has a lagged impact. The Fed is aiming for the economy nine months from now.

Non sono d'accordo come ho detto l'altro giorno ma su chi avrà ragione ce lo dirà il mercato...
 
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“What we would like to avoid is a situation where we have waited so long that we are forced to tighten policy abruptly, which risks aborting what I would like to see as a very long running and sustainable expansion,” Yellen said.
 
Yellen acknowledges that inflation has missed the Fed’s target for three years. But, she points out, the Fed pre-2008 ignored inflation that overshot 2% (though that wasn’t a target in those years.)
 
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